September 3, 2020

Assumptions and Properties of Indifference Curve

1 Comment / Microeconomics, Study Materials /

Concept of Indifference Curve (IC) In the microeconomic analysis, an indifference curve (IC) is a graph that shows different combinations of two goods or services that provides the same level of total satisfaction to the consumers. A consumer is always indifferent among any of the bundles of two goods on an indifference curve as they […]

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Concept and Assumptions of Ordinal Utility Analysis

Leave a Comment / Microeconomics, Study Materials /

Learning Objective To explain the concept and assumptions of ordinal utility analysis Concept of Ordinal Utility Analysis The theory of consumer behavior helps us to observe and predict consumers’ responses to changes in prices, income, tastes and preferences, price of related goods, and promotional expenditures. Understanding the consumer’s responses to changes in such variables helps

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